Less Than Half of Baby Boomers Have Paid Off Their Mortgages

The influential baby boomer generation is positioned to retire 'en masse' over the next decade. A recent TD Waterhouse survey shows that while three quarters of them think paying off their mortgage before they retire is important, less than half have done so.

According to the TD report, about four in five Canadian boomers plan to move to smaller homes, and most still prefer detached homes. The top reasons for downsizing are to save money and gain more luxury by sacrificing square footage. At least half are considering purchasing a condo, although they list having more guest room and a backyard as reasons for preferring detached homes.

The survey raises concerns about how well boomers are prepared for retirement, given that of those boomers who continue to carry a mortgage, one quarter of them have paid off less than 25 percent of their mortgages.

In British Columbia, one of the most expensive cities in which to own a home, only 24 percent of boomers are mortgage free - five percent fewer than the national average.

Anyone planning for their retirement should review their mortgage and seek options to pay it off before they experience a sharp reduction in earned income. These include increasing the amounts or frequency of their payments or moving to smaller, more affordable mortgages in the interim.